Coinbase scores major win as SEC set to drop lawsuit
- Coinbase says the SEC has agreed to dismiss its lawsuit against the US-based crypto exchange.
- The SEC sued Coinbase in 2023 but with Gary Genslers exit, the regulator is eyeing better regulatory approach.
US-based crypto exchange Coinbase is set for a landmark development after the Securities and Exchange Commission reportedly agreed to dismiss its own lawsuit against the exchange.
Coinbase announced the huge news in a blog post on Friday, Feb. 21. Coinbase CEO Brian Armstrong also shared the development in an interview with CNBCs Squawk Box.
SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval righting a major wrong, Coinbase chief legal officer Paul Grewal wrote.
Coinbase CEO Brian Armstrong also shared the news via X.
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we're told to expect next week) pic.twitter.com/IlnoBs7N6n
Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase ending
According to the exchange, the regulators decision to withdraw the case follows a settlement that does not involve any financial penalty against Coinbase. The next move is for the SEC commissioners to ratify the agreement and end a major legal hurdle that set the US crypto market back.
While dismissal will be a major win for the rule of law and a clear vindication of our position most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset, Grewal added.
The SEC filed its lawsuit against Coinbase in 2023, accusing the exchange of operating an unregistered securities exchange. The lawsuit also included allegations of offering unregistered securities.
Coinbase contested the charges and sought a dismissal, with industry players criticizing then SEC Chair Gary Gensler of overreach amid regulation by enforcement approach.Notably, the SEC had also sued Binance, the worlds largest crypto exchange by trading volume. Other exchanges to come into the rogue agencys cross-hairs is Kraken.
However, things at the securities watchdog have taken a crypto-friendly turn since Donald Trumps election and the exit of Gensler and other Commissioners.
Acting chair Mark Uyeda has formed a crypto task force and renamed an enforcement unit amid the quest to balance compliance and the need to protect investors.
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